Mumbai-based tour and travel firm Cox & Kings Ltd has closed its qualified institutional placement (QIP), through it has raised around Rs 1,000 crore ($161.5 million), the company said in a stock market disclosure.

The board of directors at its meeting held on November 25, 2014, approved the issue price at Rs 305 per share which includes face value of Rs 5 each share and Rs 300 per share towards security premium.

Last month, the board approved to raise up to Rs 1,200 crore (approximately $196 million) through issuance of securities including equity shares or equity-linked securities, qualified institutional placement and/or any other securities to eligible investors.

Besides the QIP, the promoters led by Kerkar family are also picking shares worth around Rs 200-220 crore ($35 million). Post issue promoters holding will shrink from 59.1 per cent as of September 30, 2014 to 50.1 per cent.

Bulk of the proceeds of the QIP and preferential issue to promoters is to be used to pare down the debt.

Cox & Kings had acquired this unit in 2011 as part of acquisition of Holidaybreak through its UK unit Prometheon Holdings (UK) Ltd.

Two years ago Citigroup’s private equity arm, Citigroup Venture Capital International or CVCI, invested $137.75 million (Rs 764.66 crore) in Prometheon Holdings (UK) Ltd. Part of the proceeds from the fund raised was to be used to repay debt that Prometheon took to acquire Holidaybreak.